For the three months ended September 30, 2014, the Company had a net loss of $1.2 million, or $0.01 basic and diluted loss per share. The Company's adjusted net loss was $1.2 million (see Non-GAAP Measure section below), or $0.01 basic and diluted loss per share, excluding a $0.1 million, or $0.00 per share unrealized gain on derivative financial instruments.

For the three months ended September 30, 2013, the Company had net income of $0.7 million, or $0.00 basic and diluted earnings per share. The Company's adjusted net income was $0.6 million (see Non-GAAP Measure section below), or $0.00 basic and diluted earnings per share, excluding a $0.1 million, or $0.00 per share unrealized gain on derivative financial instruments.

Results for the nine months ended September 30, 2014 and 2013

For the nine months ended September 30, 2014, the Company had net income of $51.6 million, or $0.29 basic and $0.28 diluted earnings per share. The Company's adjusted net loss was $10.6 million (see Non-GAAP Measure section below), or $0.06 basic and diluted loss per share, which excludes (i) a gain of $51.4 million, or $0.29 per share, resulting from the previously announced sales of seven Very Large Crude Carriers ('VLCCs') under construction, (ii) a gain of $10.9 million, or $0.06 per share, resulting from the previously announced acquisition of 7,500,000 common shares of the Company in exchange for 3,422,665 shares of Dorian, (iii) a write-off of $0.3 million, or $0.00 per share, for deferred financing fees relating to the repayment of the STI Spirit Credit Facility in April 2014 and (iv) an unrealized gain on derivative financial instruments of $0.2 million or $0.00 per share.

For the nine months ended September 30, 2013, the Company had net income of $11.2 million or $0.08 basic and diluted earnings per share. The Company's adjusted net income was $10.8 million (see Non-GAAP Measure section below), or $0.08 basic and diluted earnings per share, excluding a $0.5 million, or $0.00 per share unrealized gain on derivative financial instruments.

Stock Buyback Program

Since July 28, 2014, the Company has acquired $67.5 million of its common shares that are being held as treasury shares, in the open market at an average price of $8.64 per share.

During 2014, the Company has acquired an aggregate of 36,729,136 of its common shares that are being held as treasury shares, which include (i) 19,101,536 common shares that were purchased in the open market at an average price of $9.06 per share, (ii) 7,500,000 common shares that were acquired in exchange for 3,422,665 shares in Dorian and (iii) 10,127,600 common shares that were acquired in conjunction with the Company's offering of $360 million of Convertible Senior Notes due 2019 in June 2014. There are currently 164,436,411 shares outstanding.

The Company has $82.5 million remaining under its stock buyback program as of the date of this press release. The Company expects to repurchase these shares in the open market, at times and prices that are considered to be appropriate by the Company, but is not obligated under the terms of the program to repurchase any shares.

Summary of Recent and Third Quarter Significant Events:

Recently took delivery of two ice-class 1A Handymax tankers, STI Wembley and STI Battersea, from Hyundai Mipo Dockyard Co. Ltd. ("HMD"). Including the previously announced deliveries of STI Mayfair and STI Yorkville, the Company has taken delivery of four product tankers in October 2014.

Took delivery of 17 vessels (four LR2, eight MR, and five ice-class 1A Handymax) during the third quarter of 2014, including STI St. Charles, a newbuilding MR product tanker that we purchased in August 2014 and was delivered from SPP in September 2014.

Participated in the previously announced offering of $125,250,000 in aggregate principal amount of floating rate guaranteed notes due 2019 (the "KEXIM Notes") in July 2014. The KEXIM Notes reduced KEXIM's funding obligations under the Company's KEXIM Credit Facility, and will reduce the Company's borrowing costs under such facility by 1.55% per year

Paid a quarterly cash dividend on the Company's common stock of $0.10 per share in September 2014.

Vessel deliveries

In October 2014, the Company took delivery of four product tankers. STI Yorkville and STI Mayfair, MR product tankers, were delivered from HMD and SPP, respectively and STI Wembley and STI Battersea, ice-class 1A Handymax product tankers, were delivered from HMD. Upon delivery, STI Yorkville and STI Mayfair each commenced a time charter for up to 120 days at approximately $18,000 per day and STI Wembley and STI Battersea each commenced a time charter for up to 120 days at approximately $15,000 per day.

The Company has taken delivery of 21 vessels under its Newbuilding Program with HMD, SPP, Daewoo Shipbuilding & Marine Engineering Co. Ltd. ("DSME") and Hyundai Samho Heavy Industries Co. Ltd. ("HSHI") since June 30, 2014. These deliveries are summarized as follows:

Month

Name

delivered

Type

Shipyard

1

STI Powai

July 2014

MR

HMD

2

STI Aqua

July 2014

MR

SPP

3

STI Pimlico

July 2014

Handymax

HMD

4

STI Elysees

July 2014

LR2

HSHI

5

STI Dama

August 2014

MR

SPP

6

STI Olivia

August 2014

MR

HMD

7

STI Mythos

August 2014

MR

HMD

8

STI Hackney

August 2014

Handymax

HMD

9

STI Acton

September 2014

Handymax

HMD

10

STI Fulham

September 2014

Handymax

HMD

11

STI Camden

September 2014

Handymax

HMD

12

STI Benicia(1)

September 2014

MR

SPP

13

STI Regina

September 2014

MR

SPP

14

STI St. Charles

September 2014

MR

SPP

15

STI Madison

September 2014

LR2

HSHI

16

STI Park

September 2014

LR2

HSHI

17

STI Orchard

September 2014

LR2

DSME

18

STI Mayfair

October 2014

MR

SPP

19

STI Yorkville

October 2014

MR

HMD

20

STI Wembley

October 2014

Handymax

HMD

21

STI Battersea

October 2014

Handymax

HMD

(1)

After delivery, this vessel began a one year time charter at a rate level consistent with current one year time charter contracts which includes a profit sharing mechanism whereby earnings in excess of the base time charter rate are split between the charterer and us.

Time charter-in update

In September 2014, we time chartered-in an LR2 tanker that is currently under construction in South Korea with delivery expected in January 2015. Upon delivery from the shipyard, the vessel will be chartered-in for one year at $21,050 per day. We also have an option to extend the charter for one year at $22,600 per day.

In September 2014, we extended the time charter on an LR1 tanker that is currently time chartered-in. The term of the agreement is for one year at $15,000 per day beginning in November 2014.

In September 2014, we extended the time charter on a Handymax tanker that is currently time chartered-in. The term of the agreement is for an additional year at $13,500 per day beginning in March 2015.

In August 2014, we extended the time charter on an LR2 tanker that is currently time chartered-in. The term of the agreement is for six months at $15,500 per day effective November 2014.

In August 2014, we extended the time charter on an LR2 tanker that is currently time chartered-in. The term of the agreement is for six months at $17,500 per day beginning in September 2014.

In July 2014, we extended the time charter on an LR2 tanker that is currently time chartered-in. The term of the agreement is for one year at $17,550 per day beginning in September 2014.

KEXIM Guaranteed Notes due 2019

On July 18, 2014, Seven and Seven Ltd., an exempted company incorporated with limited liability under the laws of the Cayman Islands (the "Issuer"), completed an offering of $125,250,000 in aggregate principal amount of floating rate guaranteed notes due 2019 (the "KEXIM Notes") in a private offering to qualified institutional buyers pursuant to the Securities Act and in offshore transactions complying with Regulation S under the Securities Act. The KEXIM Notes were issued in connection with the Company's KEXIM Credit Facility and will reduce KEXIM's funding obligations and the Company's borrowing costs under such facility by 1.55% per year.

Payment of 100% of all regularly scheduled installments of principal of, and interest on, the KEXIM Notes are guaranteed by The Export-Import Bank of Korea ("KEXIM"), a statutory juridical entity established under The Export-Import Bank of Korea Act of 1969, as amended, in the Republic of Korea.

The KEXIM Notes are currently listed on the Singapore Exchange Securities Trading Limited (the "SGX-ST"). The Notes will not be listed on any other securities exchange, listing authority or quotation system.

Current Liquidity

As of October 27, 2014, the Company had $84.0 million in cash.

Debt

We made the following drawdowns from our credit facilities in July, August, September and October 2014:

Drawdown amount

Credit facility

(in $ millions)

Collateral

1

2013 Credit Facility

$

19.8

STI Aqua

2

2013 Credit Facility

19.8

STI Dama

3

2013 Credit Facility

19.5

STI Mythos

4

2013 Credit Facility

19.5

STI Benicia

5

2013 Credit Facility

19.8

STI Regina

6

2013 Credit Facility

19.5

STI St. Charles

7

2013 Credit Facility

19.5

STI Yorkville

8

2013 Credit Facility

18.0

STI Wembley

9

KEXIM Credit Facility

18.8

STI Pimlico

10

KEXIM Credit Facility

30.3

STI Elysees

11

KEXIM Credit Facility

30.3

STI Madison

12

KEXIM Credit Facility

18.8

STI Hackney

13

KEXIM Credit Facility

19.0

STI Acton

14

KEXIM Credit Facility

18.8

STI Fulham

15

KEXIM Credit Facility

30.3

STI Park

16

KEXIM Credit Facility

29.7

STI Orchard

17

KEXIM Credit Facility

18.8

STI Camden

18

K-Sure Credit Facility

19.8

STI Powai

19

K-Sure Credit Facility

19.8

STI Olivia

20

K-Sure Credit Facility

20.4

STI Mayfair

21

K-Sure Credit Facility

18.9

STI Battersea

As of October 27, 2014, the Company's outstanding debt balance, and amount available to draw, is as follows:

As of
September 30, 2014

As of
October 27, 2014

In thousands of U.S. dollars

Amount
outstanding

Amount outstanding

Amount available

2010 Revolving Credit Facility

$

43,562

$

43,562

$

-

2011 Credit Facility

110,895

110,895

-

Newbuilding Credit Facility

79,340

79,340

-

2013 Credit Facility

276,327

313,827

207,000

(1

)

K-Sure Credit Facility

79,200

118,480

339,788

(2

)

KEXIM Credit Facility

252,075

252,075

177,525

(3

)

Senior Unsecured Notes

53,750

53,750

-

Convertible Senior Notes

360,000

360,000

-

(4

)

Total

$

1,255,149

$

1,331,929

$

724,313

(1)

Availability can be used to finance the lesser of 60% of the contract price for a qualifying newbuilding vessel or such vessel's fair market value at the date of drawdown.

(2)

Availability can be used to finance the lesser of 60% of the newbuilding contract price and 74% of the fair market value of the relevant vessel specified in the agreement.

(3)

Availability can be used to finance the lesser of 60% of the newbuilding contract price and 74% of the fair market value of the relevant vessel specified in the agreement. Includes $125.3 million of floating rate guaranteed notes due 2019 issued by Seven and Seven Ltd. in July 2014.

(4)

$61.3 million of this amount has been attributed to the conversion feature of the Convertible Senior Notes and recorded within additional paid in capital on the consolidated balance sheet as of September 30, 2014.

Newbuilding Program

During the third quarter of 2014, the Company made $451.2 million of installment payments on its newbuilding vessels. The Company currently has 27 newbuilding vessel orders with HMD, SPP, HSHI and DSME (14 MRs, five Handymax ice class 1-A tankers and eight LR2s). The estimated future payment dates and amounts are as follows*:

Q4 2014

$

353.4

million**

Q1 2015

273.5

Q2 2015

139.4

Total

$

766.3

million

*These are estimates only and are subject to change as construction progresses.
**$83.4 million has been paid prior to the date of this press release.

Explanation of Variances on the Third Quarter of 2014 Financial Results Compared to the Third Quarter of 2013

For the three months ended September 30, 2014, the Company recorded a net loss of $1.2 million compared to net income of $0.7 million in the three months ended September 30, 2013. The following were the significant changes between the two periods:

Time charter equivalent, or TCE revenue, a non-IFRS measure, is vessel revenues less voyage expenses (including bunkers and port charges). TCE revenue is included herein because it is a standard shipping industry performance measure used primarily to compare period-to-period changes in a shipping company's performance irrespective of changes in the mix of charter types (i.e., spot charters, time charters, and pool charters), and it provides useful information to investors and management. The following table depicts TCE revenue for the three months ended September 30, 2014 and 2013:

For the three months ended September 30,

2014

2013

In thousands of U.S. dollars

Vessel revenue

$

82,891

$

57,756

Voyage expenses

(902

)

(1,249

)

TCE revenue

$

81,989

$

56,507

TCE revenue increased $25.5 million to $82.0 million. This increase was primarily driven by an increase in the average number of operating vessels (owned and time chartered-in) to 58.6 from 42.3 for the three months ended September 30, 2014 and 2013, respectively along with an increase in time charter equivalent revenue per day to $15,264 per day from $14,557 per day for the three months ended September 30, 2014 and 2013, respectively (see the breakdown of daily TCE averages below).

Vessel operating costs increased $9.8 million to $20.9 million from $11.1 million for the three months ended September 30, 2014 and 2013, respectively. This increase was primarily driven by an increase in the Company's owned fleet to an average of 33.7 vessels from 17.3 vessels for the three months ended September 30, 2014 and 2013, respectively. The increase was offset by an overall decrease in vessel operating costs per day to $6,705 per day from $6,851 per day for the three months ended September 30, 2014 and 2013, respectively (see the breakdown of daily TCE averages below).

Charterhire expense increased $1.1 million to $32.9 million from $31.9 million for the three months ended September 30, 2014 and 2013, respectively. The increase is a result of a shift in the mix of time chartered-in vessels towards larger vessel classes (LR1 and LR2) offset by a reduction in exposure towards smaller vessel classes (Handymax and MR) for the three months ended September 30, 2014 and 2013, respectively. See the Company's Fleet List below for the terms of these agreements.

Depreciation expense increased $5.2 million to $11.6 million from $6.4 million for the three months ended September 30, 2014 and 2013, respectively. This increase was primarily the result of an increase in the average number of owned vessels to 33.7 from 17.3 for the three months ended September 30, 2014 and 2013, respectively.

General and administrative expenses increased $5.2 million to $11.7 million from $6.5 million for the three months ended September 30, 2014 and 2013, respectively. This increase was driven by a $3.8 million increase in the amortization of restricted stock (non-cash) and an overall increase in other general and administrative expenses due to the significant growth in the Company's fleet and Newbuilding Program.

Financial expenses increased $6.2 million to $6.7 million from $0.5 million primarily as a result in an increase in the Company's debt balance for the three months ended September 30, 2014 and 2013, respectively. Total debt outstanding, net of deferred financing fees, was $1.2 billion at September 30, 2014 compared to $171.3 million at September 30, 2013.

Scorpio Tankers Inc. and Subsidiaries

Condensed Consolidated Statement of Profit or Loss

(unaudited)

For the three months ended September 30,

For the nine months ended September 30,

In thousands of U.S. dollars except per share and share data

2014

2013

2014

2013

Revenue

Vessel revenue

$

82,891

$

57,756

$

217,070

$

154,213

Operating expenses

Vessel operating costs

(20,933

)

(11,137

)

(47,683

)

(27,635

)

Voyage expenses

(902

)

(1,249

)

(5,427

)

(3,782

)

Charterhire

(32,941

)

(31,877

)

(109,334

)

(79,345

)

Depreciation

(11,574

)

(6,377

)

(24,896

)

(16,665

)

General and administrative expenses

(11,676

)

(6,522

)

(34,300

)

(14,571

)

Gain on sale of VLCCs

-

-

51,419

-

Gain on sale of Dorian shares

-

-

10,924

-

Total operating expenses

(78,026

)

(57,162

)

(159,297

)

(141,998

)

Operating income

4,865

594

57,773

12,215

Other (expense) and income, net

Financial expenses

(6,683

)

(448

)

(7,554

)

(2,323

)

Realized gain on derivative financial instruments

-

3

17

25

Unrealized gain on derivative financial instruments

75

118

187

483

Financial income

103

400

172

950

Share of income from associate

462

-

1,036

-

Other expenses, net

19

-

(34

)

(106

)

Total other expense, net

(6,024

)

73

(6,176

)

(971

)

Net (loss) / income

$

(1,159

)

$

667

$

51,597

$

11,244

Earnings / (loss) per share

Basic

$

(0.01

)

$

0.00

$

0.29

$

0.08

Diluted

$

(0.01

)

$

0.00

$

0.28

$

0.08

Scorpio Tankers Inc. and Subsidiaries

Condensed Consolidated Balance Sheet

(unaudited)

As of

In thousands of U.S. dollars

September 30, 2014

December 31, 2013

Assets

Current assets

Cash and cash equivalents

$

140,541

$

78,845

Accounts receivable

80,133

72,542

Prepaid expenses and other current assets

4,040

2,277

Inventories

4,562

2,857

Vessels held for sale

11,980

82,649

Total current assets

241,256

239,170

Non-current assets

Vessels and drydock

1,496,572

530,270

Vessels under construction

484,704

649,526

Other assets

31,791

17,907

Investment in associate

154,714

209,803

Total non-current assets

2,167,781

1,407,506

Total assets

$

2,409,037

$

1,646,676

Current liabilities

Current portion of long-term debt

98,512

10,453

Debt related to vessels held for sale

5,906

21,397

Accounts payable

14,263

20,696

Accrued expenses

12,321

7,251

Derivative financial instruments

321

689

Total current liabilities

131,323

60,486

Non-current liabilities

Long term debt

1,057,744

135,279

Derivative financial instruments

-

188

Total non-current liabilities

1,057,744

135,467

Total liabilities

1,189,067

195,953

Shareholders' equity

Issued, authorized and fully paid in share capital:

Share capital

2,023

1,999

Additional paid in capital

1,563,056

1,536,945

Treasury shares

(316,519

)

(7,938

)

Hedging reserve

(116

)

(212

)

Accumulated deficit

(28,474

)

(80,071

)

Total shareholders' equity

1,219,970

1,450,723

Total liabilities and shareholders' equity

$

2,409,037

$

1,646,676

Scorpio Tankers Inc. and Subsidiaries

Condensed Consolidated Statement of Cash Flows

(unaudited)

For the nine months ended September 30,

In thousands of U.S. dollars

2014

2013

Operating activities

Net income

$

51,597

$

11,244

Gain on sale of VLCCs

(51,419

)

-

Gain on sale of Dorian shares

(10,924

)

-

Depreciation

24,896

16,665

Amortization of restricted stock

22,068

6,738

Amortization of deferred financing fees

2,307

538

Straight-line adjustment for charterhire expense

3

7

Share of income from associate

(1,036

)

-

Unrealized gain on derivative financial instruments

(187

)

(483

)

Amortization of acquired time charter contracts

277

-

Accretion of convertible senior notes

2,680

-

40,262

34,709

Changes in assets and liabilities:

Drydock payments

(1,290

)

(1,448

)

Increase in inventories

(1,705

)

(1,328

)

Increase in accounts receivable

(7,591

)

(37,523

)

Increase in prepaid expenses and other current assets

(793

)

(2,942

)

Increase in other assets

(969

)

(395

)

Increase in accounts payable

252

1,337

Increase / (decrease) in accrued expenses

6,140

(29

)

Interest rate swap termination payment

(274

)

-

(6,230

)

(42,328

)

Net cash inflow / (outflow) from operating activities

34,032

(7,619

)

Investing activities

Acquisition of vessels and payments for vessels under construction

(927,166

)

(585,182

)

Proceeds from disposal of vessels

213,670

-

Net cash outflow from investing activities

(713,496

)

(585,182

)

Financing activities

Debt repayments

(64,381

)

(24,102

)

Issuance of debt

789,949

52,050

Debt issuance costs

(41,104

)

(12,266

)

Proceeds from issuance of convertible senior notes

360,000

983,537

Convertible senior notes issuance costs

(10,986

)

-

Equity issuance costs

(42

)

(35,531

)

Dividends paid

(50,746

)

(10,684

)

Repurchase of common stock

(241,530

)

-

Net cash inflow from financing activities

741,160

953,004

Increase in cash and cash equivalents

61,696

360,203

Cash and cash equivalents at January 1,

78,845

87,165

Cash and cash equivalents at September 30,

$

140,541

$

447,368

Scorpio Tankers Inc. and Subsidiaries

Other operating data for the three and nine months ended September 30, 2014 and 2013

(unaudited)

For the three months ended September 30,

For the nine months ended September 30,

2014

2013

2014

2013

Adjusted EBITDA(1)(in thousands of U.S. dollars)

$

25,077

$

10,830

$

45,282

$

35,537

Average Daily Results

Time charter equivalent per day(2)

15,264

14,557

14,683

15,388

Vessel operating costs per day(3)

6,705

6,851

6,956

6,656

Aframax/LR2

TCE per revenue day (2)

19,375

10,876

16,390

12,803

Vessel operating costs per day(3)

6,594

9,112

7,419

7,799

Panamax/LR1

TCE per revenue day (2)

17,034

13,349

16,700

13,519

Vessel operating costs per day(3)

7,928

8,174

8,739

7,570

MR

TCE per revenue day (2)

14,457

17,304

13,626

17,706

Vessel operating costs per day(3)

6,673

5,956

6,592

5,930

Handymax

TCE per revenue day (2)

13,056

13,029

13,879

14,246

Vessel operating costs per day(3)

6,122

7,157

6,969

6,690

Fleet data

Average number of owned vessels

33.7

17.3

25.0

14.9

Average number of time chartered-in vessels

24.9

25.0

27.7

21.1

Drydock

Expenditures for drydock (in thousands of U.S. dollars)

-

-

$

1,290

-

(1)

See Non-GAAP Measure section below

(2)

Freight rates are commonly measured in the shipping industry in terms of time charter equivalent per day (or TCE per day), which is calculated by subtracting voyage expenses, including bunkers and port charges, from vessel revenue and dividing the net amount (time charter equivalent revenues) by the number of revenue days in the period. Revenue days are the number of days the vessel is owned less the number of days the vessel is off-hire for drydock and repairs.

(3)

Vessel operating costs per day represent vessel operating costs excluding non-recurring expenses (for example insurance deductible expenses for repairs) divided by the number of days the vessel is owned during the period.

Fleet List as of October 27, 2014

Vessel Name

Year Built

DWT

Ice class

Employment

Vessel type

Owned vessels

1

STI Highlander

2007

37,145

1A

SHTP (1)

Handymax

2

STI Brixton

2014

38,000

1A

SHTP (1)

Handymax

3

STI Comandante

2014

38,000

1A

SHTP (1)

Handymax

4

STI Pimlico

2014

38,000

1A

Spot

Handymax

5

STI Hackney

2014

38,000

1A

SHTP (1)

Handymax

6

STI Acton

2014

38,000

1A

Spot

Handymax

7

STI Fulham

2014

38,000

1A

Spot

Handymax

8

STI Camden

2014

38,000

1A

Spot

Handymax

9

STI Battersea

2014

38,000

1A

Spot

Handymax

10

STI Wembley

2014

38,000

1A

Spot

Handymax

11

STI Amber

2012

52,000

-

SMRP(4)

MR

12

STI Topaz

2012

52,000

-

SMRP(4)

MR

13

STI Ruby

2012

52,000

-

SMRP(4)

MR

14

STI Garnet

2012

52,000

-

SMRP(4)

MR

15

STI Onyx

2012

52,000

-

SMRP(4)

MR

16

STI Sapphire

2013

52,000

-

SMRP(4)

MR

17

STI Emerald

2013

52,000

-

SMRP(4)

MR

18

STI Beryl

2013

52,000

-

SMRP(4)

MR

19

STI Le Rocher

2013

52,000

-

SMRP(4)

MR

20

STI Larvotto

2013

52,000

-

SMRP(4)

MR

21

STI Fontvieille

2013

52,000

-

SMRP(4)

MR

22

STI Ville

2013

52,000

-

SMRP(4)

MR

23

STI Duchessa

2014

52,000

-

SMRP(4)

MR

24

STI Opera

2014

52,000

-

SMRP(4)

MR

25

STI Texas City

2014

52,000

-

Time Charter (5)

MR

26

STI Meraux

2014

52,000

-

Time Charter (6)

MR

27

STI Chelsea

2014

52,000

-

SMRP(4)

MR

28

STI Lexington

2014

52,000

-

SMRP(4)

MR

29

STI San Antonio

2014

52,000

-

Time Charter (6)

MR

30

STI Venere

2014

52,000

-

SMRP(4)

MR

31

STI Virtus

2014

52,000

-

Spot

MR

32

STI Powai

2014

52,000

-

SMRP(4)

MR

33

STI Aqua

2014

52,000

-

Spot

MR

34

STI Dama

2014

52,000

-

SMRP(4)

MR

35

STI Olivia

2014

52,000

-

SMRP(4)

MR

36

STI Mythos

2014

52,000

-

Spot

MR

37

STI Benicia

2014

52,000

-

Time Charter (6)

MR

38

STI Regina

2014

52,000

-

Spot

MR

39

STI St. Charles

2014

52,000

-

Spot

MR

40

STI Mayfair

2014

52,000

-

Spot

MR

41

STI Yorkville

2014

52,000

-

Spot

MR

42

STI Harmony

2007

73,919

1A

SPTP (2)

LR1

43

STI Heritage

2008

73,919

1A

SPTP (2)

LR1

44

Venice

2001

81,408

1C

SPTP (2)

Post-Panamax

45

STI Elysees

2014

109,999

-

SLR2P (3)

LR2

46

STI Madison

2014

109,999

-

SLR2P (3)

LR2

47

STI Park

2014

109,999

-

SLR2P (3)

LR2

48

STI Orchard

2014

109,999

-

SLR2P (3)

LR2

Total owned DWT

2,660,387

Vessel Name

Year Built

DWT

Ice class

Employment

Vessel type

Daily Base Rate

Expiry (7)

Time chartered-in vessels

49

Kraslava

2007

37,258

1B

SHTP (1)

Handymax

$13,650

18-May-15

50

Krisjanis Valdemars

2007

37,266

1B

SHTP (1)

Handymax

$13,650

14-Apr-15

(8)

51

Jinan

2003

37,285

-

SHTP (1)

Handymax

$12,600

28-Apr-15

52

Iver Prosperity

2007

37,412

-

SHTP (1)

Handymax

$12,500

03-Mar-16

(9)

53

Histria Azure

2007

40,394

-

SHTP (1)

Handymax

$13,550

04-Apr-15

54

Histria Coral

2006

40,426

-

SHTP (1)

Handymax

$13,550

17-Jul-15

55

Histria Perla

2005

40,471

-

SHTP (1)

Handymax

$13,550

15-Jul-15

56

Targale

2007

49,999

-

SMRP(4)

MR

$14,850

17-May-15

(10)

57

Nave Orion

2013

49,999

-

SMRP(4)

MR

$14,300

25-Mar-15

(11)

58

Gan-Trust

2013

51,561

-

SMRP(4)

MR

$16,250

06-Jan-16

(12)

59

Usma

2007

52,684

1B

SMRP(4)

MR

$14,500

03-Jan-15

60

SN Federica

2003

72,344

-

SPTP (2)

LR1

$11,250

15-May-15

(13)

61

SN Azzura

2003

72,344

-

SPTP (2)

LR1

$13,600

25-Dec-14

62

King Douglas

2008

73,666

-

SPTP (2)

LR1

$14,000

08-Nov-15

(14)

63

Hellespont Progress

2006

73,728

-

SPTP (2)

LR1

$15,000

18-Mar-15

(15)

64

FPMC P Eagle

2009

73,800

-

SPTP (2)

LR1

$14,525

09-Sep-15

65

FPMC P Hero

2011

99,995

-

SLR2P (3)

LR2

$15,250

02-May-15

(16)

66

FPMC P Ideal

2012

99,993

-

SLR2P (3)

LR2

$15,500

09-Jan-15

67

Swarna Jayanti

2010

104,895

-

SLR2P (3)

LR2

$15,000

11-Mar-15

(17)

68

TBN Densa Crocodile

2015

105,408

-

SLR2P (3)

LR2

$21,050

30-Jan-16

(18)

69

Densa Alligator

2013

105,708

-

SLR2P (3)

LR2

$17,550

17-Sep-15

(19)

70

Khawr Aladid

2006

106,003

-

SLR2P (3)

LR2

$15,400

11-Jul-15

71

Fair Seas

2008

115,406

-

SLR2P (3)

LR2

$17,500

10-Mar-15

72

Southport

2008

115,462

-

SLR2P (3)

LR2

$15,700

10-Dec-14

Total time chartered-in DWT

1,693,507

Newbuildings currently under construction

Vessel Name

Yard

DWT

Ice class

Vessel type

Product tankers

73

Hull 2477 - TBN STI Finchley

HMD

(20)

38,000

1A

Handymax

74

Hull 2478 - TBN STI Clapham

HMD

(20)

38,000

1A

Handymax

75

Hull 2479 - TBN STI Poplar

HMD

(20)

38,000

1A

Handymax

76

Hull 2499 - TBN STI Hammersmith

HMD

(20)

38,000

1A

Handymax

77

Hull 2500 - TBN STI Rotherhithe

HMD

(20)

38,000

1A

Handymax

78

Hull 2445 - TBN STI Milwaukee

HMD

(20)

52,000

-

MR

79

Hull 2461 - TBN STI Battery

HMD

(20)

52,000

-

MR

80

Hull 2474 - TBN STI Pontiac

HMD

(20)

52,000

-

MR

81

Hull 2490 - TBN STI Osceola

HMD

(20)

52,000

-

MR

82

Hull 2492 - TBN STI Notting Hill

HMD

(20)

52,000

-

MR

83

Hull 2493 - TBN STI Westminster

HMD

(20)

52,000

-

MR

84

Hull 2475 - TBN STI Seneca

HMD

(20)

52,000

-

MR

85

Hull S1143 - TBN STI Tribeca

SPP

(21)

52,000

-

MR

86

Hull S1144 - TBN STI Soho

SPP

(21)

52,000

-

MR

87

Hull S1169 - TBN STI Manhattan

SPP

(21)

52,000

-

MR

88

Hull S1170 - TBN STI Queens

SPP

(21)

52,000

-

MR

89

Hull S1145 - TBN STI Gramercy

SPP

(21)

52,000

-

MR

90

Hull S1167 - TBN STI Bronx

SPP

(21)

52,000

-

MR

91

Hull S1168 - TBN STI Brooklyn

SPP

(21)

52,000

-

MR

92

Hull S706 - TBN STI Sloane

HSHI

(22)

109,999

-

LR2

93

Hull S709 - TBN STI Condotti

HSHI

(22)

109,999

-

LR2

94

Hull S710 - TBN STI Veneto

HSHI

(22)

109,999

-

LR2

95

Hull S715 - TBN STI Oxford

HSHI

(22)

109,999

-

LR2

96

Hull S716 - TBN STI Connaught

HSHI

(22)

109,999

-

LR2

97

Hull 5395 - TBN STI Broadway

DSME

(23)

109,999

-

LR2

98

Hull 5398 - TBN STI Winnie

DSME

(23)

109,999

-

LR2

99

Hull 5399 - TBN STI Lauren

DSME

(23)

109,999

-

LR2

Total newbuilding product tankers DWT

1,797,992

Total Fleet DWT

6,151,886

(1)

This vessel operates in or is expected to operate in the Scorpio Handymax Tanker Pool (SHTP). SHTP is operated by Scorpio Commercial Management (SCM). SHTP and SCM are related parties to the Company.

(2)

This vessel operates in or is expected to operate in the Scorpio Panamax Tanker Pool (SPTP). SPTP is operated by SCM. SPTP is a related party to the Company.

(3)

This vessel operates in or is expected to operate in the Scorpio LR2 Pool (SLR2P). SLR2P is operated by SCM. SLR2P is a related party to the Company.

(4)

This vessel operates in or is expected to operate in the Scorpio MR Pool (SMRP). SMRP is operated by SCM. SMRP is a related party to the Company.

(5)

This vessel is on a time charter agreement for two years, which also contains a 50% profit sharing provision whereby we split all of the vessel's profits above the daily base rate with the charterer.

(6)

This vessel is on a time charter agreement for one year, which also contains a 50% profit sharing provision whereby we split all of the vessel's profits above the daily base rate with the charterer.

(7)

Redelivery from the charterer is plus or minus 30 days from the expiry date.

(8)

The agreement also contains a 50% profit and loss sharing provision whereby we split all of the vessel's profits and losses above or below the daily base rate with the vessel's owner.

(9)

In September 2014, we declared an option to extend the charter for an additional year at $13,500 per day effective March 3, 2015.

(10)

We have options to extend the charter for up to two consecutive one year periods at $15,200 per day and $16,200 per day, respectively.

(11)

We have an option to extend the charter for an additional year at $15,700 per day.

(12)

The rate for the first year of this agreement was $15,750 per day, the rate for the second year is $16,250 per day, and the rate for the third year is $16,750 per day. We have options to extend the charter for up to two consecutive one year periods at $17,500 per day and $18,000 per day, respectively.

(13)

We have an option to extend the charter for an additional year at $12,500 per day. We have also entered into an agreement with the vessel's owner whereby we split all of the vessel's profits above the daily base rate.

(14)

In September 2014, we declared an option to extend the charter for an additional year at $15,000 per day effective November 8, 2014.

(15)

We have options to extend the charter for up to two consecutive one year periods at $16,250 per day and $17,250 per day, respectively.

(16)

In September 2014, we declared an option to extend the charter for an additional six months at $15,500 per day effective November 2, 2014.

(17)

We have an option to extend the charter for an additional six months at $16,250 per day.

(18)

This vessel is currently under construction and is scheduled to be delivered in January 2015. We have an option to extend the charter for an additional year at $22,600 per day.

(19)

In July 2014, we declared an option to extend the charter for an additional twelve months at $17,550 per day effective September 17, 2014.

(20)

These newbuilding vessels are being constructed at HMD (Hyundai Mipo Dockyard Co. Ltd. of South Korea). Six vessels are expected to be delivered in 2014 and six vessels in the first and second quarters of 2015.

(21)

These newbuilding vessels are being constructed at SPP (SPP Shipbuilding Co., Ltd. of South Korea). Three vessels are expected to be delivered in 2014 and four vessels in the first and second quarters of 2015.

(22)

These newbuilding vessels are being constructed at HSHI (Hyundai Samho Heavy Industries Co., Ltd). Three vessels are expected to be delivered in 2014 and two vessels in the first quarter of 2015.

(23)

These newbuilding vessels are being constructed at DSME (Daewoo Shipbuilding and Marine Engineering). One vessel is expected to be delivered in the fourth quarter of 2014 and two vessels in the second quarter of 2015.

Business Strategy, Dividend Policy, and Stock Buyback Program

Business StrategyThe Company's primary objectives are to profitably grow the business and emerge as a major operator of product tanker vessels. The Company intends to acquire modern, high-quality tankers through timely and selective acquisitions. The Company is currently concentrating on these sectors because of their attractive fundamentals which the Company believes includes:

increasing demand for refined products.

increasing ton miles (distance between production and areas of demand), and

reduced order book.

Dividend Policy

The declaration and payment of dividends is subject at all times to the discretion of the Company's board of directors. The timing and amount of dividends, if any, depends on the Company's earnings, financial condition, cash requirements and availability, fleet renewal and expansion, restrictions in the loan agreements, the provisions of Marshall Islands law affecting the payment of dividends and other factors.

On September 10, 2014, the Company paid a quarterly cash dividend on its common stock of $0.10 per share to all shareholders as of August 22, 2014 (the record date). On June 12, 2014, the Company paid a quarterly cash dividend on its common stock of $0.09 per share to all shareholders as of May 27, 2014 (the record date). On March 26, 2014, the Company paid a quarterly cash dividend on its common stock of $0.08 per share to all shareholders as of March 11, 2014 (the record date).

Share Buyback Program

On July 28, 2014, the Board of Directors of the Company approved a new stock buyback program with authorization to purchase up to $150 million of its common stock. This program replaced the stock buyback programs that were previously announced in July 2010, April 2014 and June 2014, which have been terminated.

The Company expects to repurchase these shares in the open market, at times and prices that are considered to be appropriate by the Company, but is not obligated under the terms of the program to repurchase any shares.

Since July 28, 2014, the Company has purchased an aggregate of $67.5 million of shares in the open market at an average price of $8.64 per share during 2014 and has $82.5 million remaining under its stock buyback program as of the date of this press release.

About Scorpio Tankers Inc.

Scorpio Tankers Inc. is a provider of marine transportation of petroleum products worldwide. Scorpio Tankers Inc. currently owns 48 tankers (four LR2 tankers, two LR1 tankers, 10 Handymax tankers, 31 MR tankers, and one post-Panamax tanker) with an average age of 1.5 years, time charters-in 24 product tankers (eight LR2, five LR1, four MR and seven Handymax tankers), and has contracted for 27 newbuilding product tankers (14 MR, eight LR2, and five Handymax ice class-1A product tankers), 13 are expected to be delivered to the Company throughout 2014 and 14 in 2015. The Company also owns approximately 16% of Dorian LPG Ltd. Additional information about the Company is available at the Company's website www.scorpiotankers.com, which is not a part of this press release.

Non-GAAP MeasuresThis press release describes adjusted net income and Adjusted EBITDA, which are not measures prepared in accordance with IFRS (i.e. "Non-GAAP" measure). The Non-GAAP measures are presented in this press release as we believe that they provide investors with a means of evaluating and understanding how the Company's management evaluates the Company's operating performance. These Non-GAAP measures should not be considered in isolation from, as substitutes for, or superior to financial measures prepared in accordance with IFRS.

Adjusted net income / (loss)

For the three months ended September 30,

2014

2013

In thousands of U.S. dollars except per share and share data

Amount

Per share

Amount

Per share

Net (loss) / income

$

(1,159

)

$

(0.01

)

$

667

$

0.00

Adjustments:

Unrealized gain on derivative financial instruments

(75

)

(0.00

)

(118

)

(0.00

)

Total adjustments

(75

)

(0.00

)

(118

)

(0.00

)

Adjusted net (loss) / income

$

(1,234

)

$

(0.01

)

$

549

$

0.00

For the nine months ended September 30,

2014

2013

Amount

Per share

Amount

Per share

Net income

$

51,597

$

0.29

$

11,244

$

0.08

Adjustments:

Deferred financing fees write-off - STI Spirit

317

0.00

-

-

Unrealized gain on derivative financial instruments

(187

)

(0.00

)

(483

)

(0.00

)

Gain on sale of VLCCs

(51,419

)

(0.29

)

-

-

Gain on sale of Dorian shares

(10,924

)

(0.06

)

-

-

Total adjustments

(62,213

)

(0.35

)

(483

)

(0.00

)

Adjusted net (loss) / income

$

(10,616

)

$

(0.06

)

$

10,761

$

0.08

Adjusted EBITDA

For the three months ended September 30,

For the nine months ended September 30,

In thousands of U.S. dollars

2014

2013

2014

2013

Net (loss) / income

$

(1,159

)

$

667

$

51,597

$

11,244

Financial expenses

6,683

448

7,554

2,323

Unrealized gain on derivative financial instruments

(75

)

(118

)

(187

)

(483

)

Financial income

(103

)

(400

)

(172

)

(950

)

Depreciation

11,574

6,377

24,896

16,665

Depreciation component of our net profit from associate

526

-

1,869

-

Amortization of restricted stock

7,631

3,856

22,068

6,738

Gain on sale of VLCCs

-

-

(51,419

)

-

Gain on sale of Dorian shares

-

-

(10,924

)

-

Adjusted EBITDA

$

25,077

$

10,830

$

45,282

$

35,537

Forward-Looking Statements

Matters discussed in this press release may constitute forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides safe harbor protections for forward-looking statements in order to encourage companies to provide prospective information about their business. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and is including this cautionary statement in connection with this safe harbor legislation. The words "believe," "anticipate," "intends," "estimate," "forecast," "project," "plan," "potential," "may," "should," "expect," "pending" and similar expressions identify forward-looking statements.

The forward-looking statements in this press release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, our management's examination of historical operating trends, data contained in our records and other data available from third parties. Although we believe that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, we cannot assure you that we will achieve or accomplish these expectations, beliefs or projections.

In addition to these important factors, other important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the failure of counterparties to fully perform their contracts with us, the strength of world economies and currencies, general market conditions, including fluctuations in charter rates and vessel values, changes in demand for tanker vessel capacity, changes in our operating expenses, including bunker prices, drydocking and insurance costs, the market for our vessels, availability of financing and refinancing, charter counterparty performance, ability to obtain financing and comply with covenants in such financing arrangements, changes in governmental rules and regulations or actions taken by regulatory authorities, potential liability from pending or future litigation, general domestic and international political conditions, potential disruption of shipping routes due to accidents or political events, vessels breakdowns and instances of off-hires and other factors. Please see our filings with the Securities and Exchange Commission for a more complete discussion of these and other risks and uncertainties.